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Benefits and Disadvantages of Outsourcing

by: Sarah Joson

Wednesday, January 15, 2014 |

Even after so many years, outsourcing is still considered as a valuable business tool by countless organizations all over the world. It has contributed to the development of numerous emerging countries. According to a report from Sourcing Line Computer Economics, the US alone was seen outsourcing 2,637,239 jobs to offshore destinations last year.  

A post from YoungUpStarts.com lists down the common advantages and drawbacks of outsourcing.

Remote operations can be quite a handful.
Companies that are looking to outsource offshore need to consider cultural difference and language as major challenges. Yes, they will know what it is that you want them to do, but will they be able to deliver the results according to your exact specifications? Difference in time zones will also be a challenge, especially for set-ups that rely on constant communication.

Management and control can become an issue.
There will be instances when people will lose track of who’s in charge. For example, it will be hard for the providers to take your company’s goals into account as they also have their own set of objectives to abide by. However, tenured providers prioritize their integrity so management, control, and even performance will not be a problem.
 
Outsourcing is flexible.
Yes, outsourcing can be the best option as it is flexible and scalable, especially if a company is in an active and thriving industry.  Some in-house operations require large amounts of capital investment, which might be too much for some. Outsourcing, on the other hand, allows businesses to make incremental adjustments rather than change major operations at once.
 
 

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